I’m in St. Louis, MO and in this area the average is about 8% of the gross monthly rent. In addition, I’ve found that the charge is between 50% to 100% of the gross monthly rent to place a tenant in a property for you.
As far as lawn and snow care, typically you want your tenant to take care of that, but if you decide to offer that as part of the lease than the property management company you use probably has services they use and just take it out of your monthly rent that is coming in.
Im curious how much or a average or precent that a property managment company would charge to rent, and collect rent from tennants. And handle the red tape of leasing houses, also what about if lawn and snow care is involved.
This is negotiable and varies from place to place. But 5% to 7% of the gross rent is usual.If I paid the higher fee I would expect them to rent out vacancies at no extra charge. This gives them an incentive to pick good tenants who will stay put. Paying them for each vacancy gives them an incentive to rent to “anybody” and pays them a bonus for high turnover.
I also like to pay a “bonus” for every month a property is fully rented and all the rents are in the bank by the 5th of the month. For example if they want $1000 a month I will offer to pay $750 with a bonus of $250. This is negotiable like everything else.
Alternatively insist that their fee be based on the actual rent collected not the rent roll. If you can lose money on a vacancy or deadbeat tenant so can they. This also gives them the incentive to do a good job and makes sure your rents do not lag behind the market.
Grass cutting repairs etc. are separate but shouldn’t run more than another 5%.